More companies bring production back to U.S.
By Thomas Russell -- Furniture Today, May 3, 2010
HIGH POINT —
In the past decade, competition from overseas has nearly eliminated domestic bedroom production. Except for a handful of niche producers, the category shifted almost entirely to Asia.
But due to a variety of factors, from rising Chinese labor cost to labor shortages in Asia, some big importers have brought some bedroom production back to the United States.
These companies still import the bulk of their bedroom furniture. However, they have recently begun making some sets here in existing production facilities in hopes of developing a more blended sourcing approach.
Bernhardt, for example, is producing six upholstered beds in Lenoir, N.C., the first of which was introduced a year ago and hit retail last October. The retail price is about $1,200 for a king bed in fabric.
Company officials said it makes sense to make the beds domestically because they can use the company's domestic upholstery production capabilities, also in Lenoir.
At this April's market, Thomasville Furniture rolled out a 21-piece case goods collection called Cooper's Landing. While the dining and occasional are done overseas, the bedroom portion of the clean-lined, Mission-inspired group is made in the company's Lenoir, N.C., factory. Made with oak veneers in chestnut brown and coal black finish options, it features a queen slat panel sleigh bed retailing for $1,199.
Thomasville officials estimate that about one third of their case goods mix is made domestically, up from about 20% two years ago. The shift makes sense partly because of issues such as rising freight and overseas labor costs, combined with ongoing labor shortages in parts of Asia, said President and CEO Ed Teplitz.
“We are poised for growth,” he said. “There may be an opportunity to step up and bring more (production) back here.”
However, he said due to the labor-intensive nature of building furniture, the products that make sense to build at U.S. plants often are clean-lined groups that don't use a lot of fancy-face veneers or have many carved elements that involve hand labor.
Sister company Broyhill is producing a domestic bedroom called Chatham Place in Thomasville's Lenoir plant. Launched last fall, this solid cherry group also has clean-lined elements that make it cost-effective to produce in the U.S.
“It was a natural fit for the marketplace for it to be made in their plant,” said Broyhill President Jeff Cook, adding that the made-in-the-USA element appeals to some customers. “It is retailing well.”
But while solid wood groups like Chatham Place are a good fit for the Lenoir plant, he added, “There is still significant value in anything we bring in from Asia.”
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